Virtual Reality Therapy Hardware Market Report 2025

The virtual reality therapy hardware market size has grown exponentially in recent years. It will grow from $1.56 billion in 2024 to $1.87 billion in 2025 at a compound annual growth rate (CAGR) of 20.1%. Growth in the historic period was driven by increasing adoption of VR in healthcare for exposure therapy, rising prevalence of anxiety disorders and PTSD, higher investments in healthcare innovation, supportive research validating VR effectiveness, and growing awareness among therapists and clinicians.

The virtual reality therapy hardware market size is expected to see rapid growth in the next few years. It will grow to $3.84 billion in 2029 at a compound annual growth rate (CAGR) of 19.7%. Growth in the forecast period is expected to result from rising demand for non-invasive and drug-free treatment alternatives, integration of VR therapy into mainstream mental health programs, increased government and insurance support for digital health tools, greater affordability and accessibility of VR hardware, and expanding applications in rehabilitation, neurology, and pain management. Primary trends anticipated for the forecast period include development of lightweight and ergonomic VR headsets, integration of eye-tracking and biofeedback sensors, adoption of wireless and cloud-connected VR devices, incorporation of AI-driven personalization in therapy content, and advancements in haptic feedback and immersive environments.

The increasing prevalence of mental disorders is expected to drive the growth of the virtual reality therapy hardware market. Mental disorders affect an individual's thoughts, emotions, behavior, or mood, significantly disrupting daily activities and overall well-being. As social isolation grows, it leads to heightened stress and anxiety, which further deteriorate emotional health and contribute to mental health challenges. This surge in mental health issues is fueling the demand for virtual reality therapy hardware, as these immersive technologies offer efficient, accessible treatment options, including exposure therapy, mindfulness training, and other therapeutic interventions within controlled virtual settings. For example, a report from the American Psychiatric Association in May 2024 revealed that 43% of adults in the United States experienced more anxiety, compared to 37% in 2023 and 32% in 2022, indicating a steady increase in anxiety levels. This rise in mental health conditions is therefore accelerating the demand for virtual reality therapy hardware.

Key players in the virtual reality therapy hardware market are focusing on developing advanced products such as VR-based healthcare tools to enhance treatment outcomes and provide more personalized therapy experiences. These tools leverage immersive simulations to assist in diagnosis, treatment, and rehabilitation while improving patient care through interactive and individualized therapeutic experiences. For example, in March 2022, Penumbra, Inc., a U.S.-based healthcare company, introduced the REAL y-Series, an advanced VR therapy hardware system. The platform combines a VR headset, full-body motion sensors, and a clinician interface called TherapyView, enabling hands-free rehabilitation exercises customized for each patient’s needs. This launch expanded the company's VR healthcare offerings, introducing a broader range of activities and experiences aimed at enhancing patient care and rehabilitation, with upgraded hardware and a more flexible interface for therapists to tailor treatment programs for a diverse group of patients.

In April 2023, XRHealth, a U.S.-based manufacturer of virtual reality therapy hardware, merged with Amelia Virtual Care, a provider of mental health services based in Spain, to create the largest XR therapeutics platform. The merger aims to combine the best of XR and VR therapeutic solutions, integrating both physical and mental health treatments to reach a wider patient population.

Major players in the virtual reality therapy hardware market are Apple Inc., Meta Platforms Inc., Penumbra Inc., HTC Corporation, Sony Interactive Entertainment Europe Limited, MindMaze SA, XRHealth Inc., MyndVR Inc., AppliedVR Inc., NuEyes Technologies Inc., Looxid Labs Inc., OpenBCI Inc., Karuna Labs Inc., Rewire Fitness Inc., Novobeing Inc., Amelia Virtual Care Inc., Twin Reality Technologies Inc., Pico Interactive Inc., Biomed India, and KineQuantum SAS.

North America was the largest region in the virtual reality therapy hardware market in 2024. The regions covered in virtual reality therapy hardware report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the virtual reality therapy hardware market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

The fast surge in U.S. tariffs and the trade tensions that followed in spring 2025 are heavily affecting the medical equipment sector, particularly for imported imaging machine components, surgical-grade stainless steel, and plastic disposables. Hospitals and clinics resist price hikes, pressuring manufacturers’ margins. Regulatory hurdles compound the problem, as tariff-related supplier changes often require re-certification of devices, delaying time-to-market. Companies are mitigating risks by dual-sourcing critical parts, expanding domestic production of commoditized items, and accelerating R&D in cost-efficient materials.

Virtual reality therapy hardware (VRTH) refers to physical devices designed to create immersive virtual environments that support therapeutic interventions. These systems engage users through visual, auditory, and sensory feedback to aid rehabilitation and cognitive training. VRTH improves treatment effectiveness by offering controlled, repeatable, and interactive experiences, with the key advantage of delivering personalized therapy in a safe and measurable way.

The primary product types of virtual reality therapy hardware include head-mounted displays, motion tracking devices, haptic feedback devices, virtual reality (VR) cameras, and others. Head-mounted displays (HMDs) are wearable devices that provide immersive visual and auditory experiences to support therapeutic interventions in virtual reality. Distribution channels include direct sales, online retail, specialty stores, and others. Applications cover mental health, physical rehabilitation, pain management, phobia treatment, and other areas. Primary end users include hospitals and clinics, rehabilitation centers, research and academic institutes, and others.

The virtual reality therapy hardware market research report is one of a series of new reports that provides virtual reality therapy hardware market statistics, including virtual reality therapy hardware industry global market size, regional shares, competitors with a virtual reality therapy hardware market share, detailed virtual reality therapy hardware market segments, market trends and opportunities, and any further data you may need to thrive in the virtual reality therapy hardware industry. The virtual reality therapy hardware market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

The virtual reality therapy hardware market consists of sales of gesture tracking devices (GTD), projectors and display walls (PDW), treadmills and haptic gloves, virtual reality (VR) glasses, and virtual reality (VR) simulators. Values in this market are 'factory gate' values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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